Re: Confessions of a buy-and-hold investor
Originally Posted by
rokid
Recently, Birch has been given some heat for his insistence that buy-and-hold is the best TSP investment strategy. Malyla stated that "I have not made one mistake other than listening to the Buy & Holders of the last 20 years."
----Jim
My problem is being a buy & holder in stocks during a bear market. Your returns will be double if you performed capital preservation in the bear markets. And your return assumes that you took the high risk road from the beginning. Many new employees didn't have the resources or knowledge to max out their contributions and invest in high risk funds from the beginning.
To be fair, the Buy & Holders of the last 20 years are those that also said forget about looking at your TSP. I advocate a Buy & Hold that performs capital preservation in bear markets and capital accumulation in Bull markets. I think I have proved this to my satisfaction. Just need to understand if F or G is better for the depths of the bear market cycle. (I remember the static B&H'ers telling me that things will get better at around the summer 2001. It took another two year before the Bull was set loose. My account suffered due to my listening to those voices).
100% I August 14 (cob 8/14). Trying it again until Oct.
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